Goolsbee: Fed Should Overshoot on Inflation Target

The transcript discusses the challenges faced by the Fed in economic forecasting, highlighting the need for new models due to persistent errors. It debates inflation concerns, noting a 2.5% wage increase and differing views on economic overheating. The discussion emphasizes the importance of Fed credibility in managing inflation expectations and the impact of past forecasting errors on market trust. The Fed's strategy to overshoot inflation targets to reestablish credibility is also explored.

What is the speaker's opinion on the Fed's approach to inflation targets?

What implications does the speaker suggest arise from the Fed's forecasting errors?